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It should be a big deal to all of us because it is not only you selling something over $600 it's ANY transaction over $600 associated with your account that they want to pass. Withdraw $700 to give to your child, the bank is required to notify the IRS. Deposit $610 from a garage sale, notify the IRS. Pull $1,000 out to stick in your safe at home, notify the IRS. This is truly frightening
It is....especially the money in out banks are already taxed and not making any money
That's not the point. I'm just saying what the current law says. I would imagine a transaction of that amount would most certainly draw scrutiny. As to the bank being required to report any transaction over $600,are you saying they are required to do so now?
Please re-read my post. I never wrote that banks are required to report revenue $600.00 or greater. The tax law applies to third parties for the tax year 2022.
It should be a big deal to all of us because it is not only you selling something over $600 it's ANY transaction over $600 associated with your account that they want to pass. Withdraw $700 to give to your child, the bank is required to notify the IRS. Deposit $610 from a garage sale, notify the IRS. Pull $1,000 out to stick in your safe at home, notify the IRS. This is truly frightening
You are referring to President Biden's proposal requiring banks and credit unions to automatically provide the IRS with reports of account inflows and outflows as part of the proposed Build Back Better legislation. The proposed legislation is overly broad and raises serious privacy concerns. The proposal was opposed by Republicans, and some Democrats, including Senator Joe Manchin, businesses and obviously constituents. FYI: The Build Back Better legislation failed without coming to a vote.
Please re-read my post. I never wrote that banks are required to report revenue $600.00 or greater. The tax law applies to third parties for the tax year 2022.
.....yet. They're trying to get a foot in the door. Nip it in the bud, and go back to cash.
.....yet. They're trying to get a foot in the door. Nip it in the bud, and go back to cash.
Banks already must report currency transaction and suspicious transaction reports to the IRS and are heavily regulated. The IRS already has W-2 and 1099 reports in addition to others. As I have already written, the proposal raises serious privacy issues and compliance costs would be excessive. Besides, the IRS already has access to your financial records through examinations.
We really are in a sad fat bloated malaize Orwellian state of affairs. Nothing should surprise anyone...anymore.
I have a solution for the TP shortage,,,1099
Cash is still king but getting tougher to spend...sad.
Funny you say that about cash, this is why the big brother wants to go cashless and they are getting there. During covid they would not even take cash, tap only and nobody even cares, it is a sad state atm.
Funny you say that about cash, this is why the big brother wants to go cashless and they are getting there. During covid they would not even take cash, tap only and nobody even cares, it is a sad state atm.
So how many of you are willing to give up your plastic? I haven't had any since monkey wards went broke.
As a side note, I was talking with my CPA today. He had been on a conference call with members of a CPA organization. He said the IRS is so dysfunctional right now. They are getting 1500 phone calls per SECOND and can only answer 2% of them. They are seriously understaffed and no relief in sight.
The world started pushing the debit card way of life about 30ish years ago. I remember when I go my first debit card, everyone knew where the ATMs were, which gas stations had debit capabilities, either that or you made sure you had enough cash.
Then, over the last few years it seems lots of business are offering incentives for using cash. There are lots of gas stations that offer a few cents off per gallon if you pay with cash. There is a little mom and pop restaurant we occasionally eat at, one of the few restaurants everyone in the family like. I went to pay the bill, already had the tip calculated so the payment was a even amount. When I went to fill in the receipt, I notice the amount had changed. I asked the cashier, wondering if maybe I misread the total. She said they had started adding an additional fee for debit card transactions.
Society has pushed electronic transactions for decades. It seems now that the push has become a way of life, they have figured out how to capitalize even further.
Remember the change shortage at the start of Covid crap? Businesses were asking people to round up the purchases to avoid having to give change. Notice they didn’t offer to round the purchase DOWN! Where did the extra change go?
I build a lot of transmissions for people around here, I always have the customer pay for the parts themselves, and occasionally they will pay for the labor/additional stuff with PayPal. Not anymore. Cash only. I build these because I enjoy it, and a little additional income is nice. However, the thought of dealing with the IRS takes all the fun out of itvv
NO! the Bank limit at credit unions is $9 k daily. I was told this by my credit union. Any withdraw over 9k they are required. Didn't tell me what is reported for deposit.
Mike- since the 1970 Bank Secrecy Act, it is far more more complicated. There is a routine 10K reporting and a requirement to report suspicious transactions of 5K or more. And, it is a federal crime to structure your deposits to avoid the reporting thresholds, even if you paid taxes on the funds. https://www.goldinglawyers.com/struc...-transactions/
Mike- since the 1970 Bank Secrecy Act, it is far more more complicated. There is a routine 10K reporting and a requirement to report suspicious transactions of 5K or more. And, it is a federal crime to structure your deposits to avoid the reporting thresholds, even if you paid taxes on the funds. https://www.goldinglawyers.com/struc...-transactions/
I understand all of that. All I said was that banks are not required to report the $600 limit as of now. I guarantee you the Feds are watching and monitoring bank accounts for fraudulent or suspicious activity.
I realize this only applies in the US for now, but Canada's governments are quick to pickup on ideas for how to grab more tax money from us by watching what happens south of the border...so I wouldn't be surprised to see something similar up here. I looked the US announcement up back when this topic first emerged, and my take away from it was that it applies to "sellers who setup a Shop which makes the sales and collects payment through Facebook." (or similar site) The key being collecting payment through Facebook, which makes the transaction trackable and reportable unlike me selling a hood to Frank who shows up on my doorstep with $100 cash in hand. Because there is no transaction record (or proof), all one needs to do is respond "Didn't sell" or "Didn't sell on FB". Different story when the funds flow through FB, PP or any of the other payment processors/marketplaces.
Of course that might change down the road, nor does it change existing laws about what we're "supposed" to do but the vast majority don't.
All in all, it's a typical method for governments to increase tax revenues by expanding the scope of existing taxes so they can proudly claim they haven't introduced any NEW taxes. Buggers.
Canada has been going after online sellers for 4 years that I know of.
and that’s private, not a registered business. My friends nephew got grabbed 4 years ago selling in kijiji.
they had 2 years worth of every item he sold. He had 2 choices on how to pay sales tax because they considered him a sole proprietor business because of always being active and having listings.
he had to get an accountant to file a voluntary disclosure. Which was the best way for him
to get out of the mess.
if he said no, I’m not paying anything, screw off. They would dig back even further,, and charge him for all
the time and resources they used to go through everything.
Even with the voluntary disclosure filing, it doesn’t mean your free to go while paying what you and your accountant think your sales were,, they can still say they don’t accept it and will do their own audit
they did accept his disclosure though,, it freaked him out. He had to borrow money to pay in the end. Between the accountant and the taxes he had to fork over.. it was an expensive lesson
now he only sells through world of mouth and only after he’s spoken to the buyer a few times to get a feeling for the person
If anyone thinks the government won’t ever dig into online private selling, they have their heads up their butts.
that personal story of my friends nephew woke me up.
There are millions of tax dollars that governments see as a cash cow with online private selling. They are also going hard after unlicensed and unregistered people doing home renovations.. all cash jobs or jobs done without a business license and paying taxes
The government went to court for access to all Home Depot’s sales and customer information.
the Home Depot faught it for over two years claiming it was private customer information,, they lost the court case
Since then the government can look into anything Home Depot sells and who buys it.
Last edited by CANADIANOLDS; January 28th, 2022 at 12:55 AM.
If anyone thinks the government won’t ever dig into online private selling, they have their heads up their butts.
I have a friend who lives in Russia and he told me what Facebook is doing is nothing compared to what they are going through over there with the bitcoin ban. I don't mess with that stuff but but I have to assume it must be a big deal because he said it was far worse than what FB is doing to all of us.
I saw this thread and thought it was a joke and never looked at it. Then I decided to list a snowmobile trailer on Facesit Marketplace, and sure enough, a page came up with a "I agree" spot, referencing you will need to list your SSN for certain transactions- bla bla... I closed out of Face book. But then I looked at it a little better, I clicked I read and agreed to the notice ( never entered my SSN) and posted my ad. I decided that I would continue and then if Item sold I would just take down ad and not tell them it had sold. And of course- Item DID NOT SELL.... ( I said did not sell, as this is also on the interwebs, ya know) . Anyway If Item had sold (But it didn't, you get it?), I would have just took ad down as there is a option stating that item was just no longer available. I later listed a snowmobile the same way ( That didn't sell either...) . The second time the " I agree" screen didn't come up.
January 6th, 2022, 08:13 PM
